(Corrects to read Bagherli, paragraphs 3,9)
* Q3 operating profit up 4 pct, ahead of consensus
* Cautious Q4 guidance sends shares 6 pct lower
* Relatively late launch of iPhone X a factor -CEO
* New acquisition Silego to be earnings accretive in 2018
FRANKFURT, Nov 7 (Reuters) - Dialog Semiconductor reported a 4 percent increase in third-quarter adjusted operating profit on Tuesday, but its shares fell more than 6 percent on cautious guidance for the final quarter.
Dialog makes power-management chips for smartphone makers including Apple Inc. Last week’s launch of the iPhone X came unusually late in the year-end shopping season, which is likely to impact revenue.
CEO Jalal Bagherli said, however, that queues at Apple stores around the world indicated the premium model would sell well. “You just have to watch TV to see that,” he told Reuters in a telephone interview.
The Anglo-German chipmaker reported underlying operating profit of $76.6 million, beating the $72 million forecast by analysts in a Reuters poll.
Revenue rose 5 percent to $363 million, up 5 percent year on year and toward the upper end of its guidance range of $340-370 million.
Dialog said it expected fourth-quarter revenue of $415-455 million, 9 percent below consensus forecasts.
“While Dialog’s Q4 outlook is slightly disappointing, we still see strong growth across its business units, Apple and non-Apple alike, and some of the sales miss is offset by slightly higher margins,” Barclays said in a note.
Dialog recently completed the acquisition of California-based Silego Technology in a deal worth up to $306 million, strengthening its position in the market for the Internet of Things.
Silego is expected to grow its top line by at least 15 percent from this year’s $80 million, and will be accretive to earnings in 2018, Bagherli said.
Demand was also strong from Chinese smartphone makers for Dialog’s fast-charging adapters as well as low-power Bluetooth connectivity products for wearable devices such as smart watches. (Reporting by Douglas Busvine; editing Ludwig Burger and Jason Neely)